I considered that longs could be wrong. But assuming earnings come in as mgmnt continues to suggest and a reasonable forward PE of 15, the PPS should be in the low 20's. I'm not being over specalutive and suggesting a LULU performance, just a reasonable valuation. Whicn all brings me back the to question of "what don't the longs know about?"
I understand shorts wagered against the success of this company for the past year believing SKUL could not compete and grow; probably a reasonable position in this competitive market. But it is earning and growing and not only is SI holding, it's still growing!!...again what don't we know? The success of any company will force out the shorts in the long run, so that will happen here if growth continues.
But shorts still feel strongly about their short position and increasing it. These guys are professionals and are not willing to risk a sizeable loss without cause; I don't think they're much in the money now at this PPS and don't think they can drive it much lower. Point being they feel strong about something to continue maintaining a SI at this price.